Q2 FY27 results analysis · November 12, 2026
Manorama Industries Ltd Q2 FY27 Results Analysis: PAT Jumps 52%, Gross Margin Compresses 577 bps
+51.8%PAT year on year, Rs. 80.81 Cr
Source: Quarterly results filing (NSE)
Quick summary
Manorama Industries Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 458.86 Cr (+41.93% YoY) and PAT growth of +51.78% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 458.86 Cr (+41.93% YoY) |
| PAT (Q2) | Rs. 80.81 Cr (+51.78% YoY) |
| EBITDA margin | 25.76% (-144 bps YoY) |
| EPS (Q2) | Rs. 12.44 (+39.62% YoY) |
Quarter Snapshot
Manorama delivered 41.93% YoY revenue growth and 51.78% PAT growth, with EBITDA margin of 25.76% inside the guided 25-27% band though at its low end. The Rs.487.92 Cr QIP transformed the balance sheet (net debt/equity 0.036x) and funds the seasonal shea inventory build and Rs.460 Cr capex program. Watch items are gross-margin compression of 577 bps YoY, a widening overseas-subsidiary loss drag of Rs.(7.01) Cr, and negative H1 operating cash flow of Rs.(252.21) Cr.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "likely ahead YoY, in line with the guided frame" | "standing bar is growth 'on and above 30%'" | +41.93% YoY consolidated | Played out |
| "EBITDA margin likely holds broadly stable versus Q1's 26.3% within the guided 25–27% band" | broadly stable, in band | 25.76% (−53 bps QoQ, in band, low end) | Played out |
| "the gross-margin trajectory the line to watch" | compression to be verified | 42.53% (−577 bps YoY) | Played out |
| PAT "leans on FX-driven other income after Q1's Rs.16.18 Cr" | reliance risk | Other income Rs.9.69 Cr (−40.14% QoQ); PAT still +2.73% QoQ — Q2 PAT was less FX-dependent | Partially |
| "capex run-rate and QIP deployment" | deployment visible | H1 capex Rs.32.08 Cr; Rs.487.92 Cr QIP raised and largely parked (bank balances Rs.461.44 Cr) | Partially |
| Shea procurement, customs deposit, subsidiary drag | watch items | Subsidiary drag quantified and widened; shea/customs silent in filing | Not observable / Partially |
| Reinstatement of a numerical FY27 revenue target | call item | Filing silent — remains open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin 25–27% yearly; "broadly stable" | Q4 FY26 earnings call band; restated "broadly stable" at Q1 FY27 call | 25.76% consol / 26.36% standalone (Q2); 26.01% consol (H1) — inside band, at low end | Met |
| Revenue growth "on and above 30%" | Stated on the Q3 FY26 earnings call | +41.93% YoY consol (Q2); +40.79% (H1) | On Track |
| Capex ~Rs.460 Cr until Q3 FY28; Rs.225–250 Cr near-term for SF/refinery/Burkina Faso | Q3 FY26 / Q4 FY26 / Q1 FY27 calls | H1 spend Rs.32.08 Cr; CWIP Rs.26.63 Cr; QIP proceeds Rs.487.92 Cr raised — early cycle | On Track |
| Debottlenecking +4,500 t → ~52,000 t | Q1 FY27 call, targeted Q3 FY27 | No commissioning update in the filing | Too Early |
| Utilization 80% of 52,000 t, quarterly updates promised | Q1 FY27 earnings call | No utilization figure in the filing | Too Early |
| "FY27 is expected to be a very good growth year… primarily volume-led" | Q4 FY26 earnings call | Revenue +41.93% YoY; volume split not disclosed — direction | Confirmed |
| Cost-plus model keeps EBITDA margins sustainable; no margin reduction expected | Q2/Q3 FY26 calls | EBITDA margin in band but −144 bps YoY; gross margin −577 bps YoY — band held, YoY compression is real | Partially |
| Consolidated EBITDA margin ~26% vs ~27% standalone from subsidiary setup costs | Prior earnings calls | 25.76% vs 26.36%; subsidiary PAT drag Rs.(7.01) Cr | Confirmed |
| QIP completion strengthens the balance sheet and funds growth | Q1 FY27 CMD commentary | Net debt/equity 0.382x → 0.036x; proceeds funding the inventory cycle | Confirmed |
Key Investment Insights
Key Positives
- Consolidated revenue grew 41.93% YoY to Rs.458.86 Cr, above management's stated 'on and above 30%' growth bar
- Consolidated PAT grew 51.78% YoY to Rs.80.81 Cr; standalone PAT grew 60.01% YoY to Rs.87.82 Cr
- EBITDA of Rs.118.18 Cr grew 34.43% YoY with margin of 25.76% inside the guided 25-27% band
- Rs.487.92 Cr QIP completed with no deviation from stated objects; net debt/equity improved from 0.382x to 0.036x
- Net worth rose 94.69% to Rs.1,328.01 Cr; current ratio improved from 1.97x to 2.81x
- Other expenses grew only 2.92% YoY against 41.93% revenue growth, showing cost control under the cost-plus model
- Q2 PAT grew 2.73% QoQ despite other income falling 40.14% QoQ, indicating less FX dependence
Risk Factors
- Gross margin compressed 577 bps YoY to 42.53% on input-cost pressure
- EBITDA margin of 25.76% is at the bottom of the guided 25-27% band, down 144 bps YoY and 53 bps QoQ
- Overseas subsidiary net loss widened to Rs.(7.01) Cr in Q2 from Rs.(2.93) Cr in Q1
- H1 operating cash flow was negative at Rs.(252.21) Cr, −1.58x PAT, on a Rs.273.40 Cr inventory build
- Employee costs (+49.29% YoY) and finance cost (+30.51% YoY) grew faster than revenue
- FY27 revenue guidance of Rs.1,600-1,800 Cr was withdrawn at the Q1 FY27 call with no replacement rupee target
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